5 Signs that your bookkeeper does not know Shopify bookkeeping
Do the numbers in your books provide accurate insights into the profitability of your Shopify business? Shopify sellers rely on clean and updated financials for strategic planning and growth in their business. Since e-commerce bookkeeping is different than regular bookkeeping, you will need to work with a bookkeeper who understand how to navigate the intricacies of Shopify bookkeeping. Could your books be a mess from a Shopify to QuickBooks Online integration gone wrong? How can you know if your bookkeeper is correctly recording all the components of your Shopify income? Let’s uncover the top 5 signs that your bookkeeper does not know Shopify bookkeeping.
#1 - Unfamiliar with Shopify-specific integrations
Each business has unique needs, and understanding which integration is best for you is crucial. Your bookkeeper should be well-versed in different integration options and help you choose the one that aligns with your specific requirements. They should be aware that most apps dump a large amount of data into your QuickBooks and they should be knowledgeable about integrations that will avoid the data dump.
#2 - Not reflecting the components of your income
Another red flag is if your bookkeeper isn't properly recording Shopify transactions and fees. They’re probably recording the net amount deposited from Shopify directly to sales income. But, net deposits from Shopify should be broken down into their various components, such as sales, refunds, returns, shipping income, sales taxes collected, and more. Each component of income should be recorded separately to accurately reflect your financials.
#3 - Unfamiliar with clearing accounts and reconciling payment processor deposits
A third sign is if your bookkeeper isn’t properly reconciling deposits received from your payment processors. Clearing accounts play a crucial role here. It’s essential to reconcile and ensure that all payments are accounted for correctly, maintaining a clear and accurate financial picture.
#4 - Unfamiliar with recording PayPal transactions
As a Shopify seller, you’re probably using PayPal as a payment processor. If your bookkeeper is duplicating income when recording your PayPal deposits, that’s a sign they are not familiar with the proper way to handle Shopify transactions flowing through PayPal. Ensuring accurate recording of PayPal transactions is crucial to avoid overstating your income.
#5 - Lack of understanding inventory and cost of goods sold transactions
If your bookkeeper struggles to properly record inventory, vendor advances, and cost of goods sold, it's a clear indication that they may not have a strong grasp of Shopify-specific inventory transactions. It's vital to accurately track and manage your inventory to make informed business decisions.
Closing & Resources
And there you have it! Those are the 5 signs that your bookkeeper may not be well-versed in Shopify. Remember, having an expert bookkeeper who understands theintricacies of e-commerce and Shopify can make a world of difference for your business. If you've noticed any of these signs, don't worry! The good news is that Mavency is here to help. Our team of Shopify bookkeeping mavens is ready to provide you with the expertise and guidance you need to ensure your financials are in top shape.
Need some more expert guidance? If you are ready to work with a trusted and reliable Shopify bookkeeping team, you can use this link to learn more about Mavency to see if we are a good fit for working together. For some additional support for your DIY Shopify bookkeeping, check out the free and paid resources linked below:
A2X - Sign up to use A2X for your Shopify to QuickBooks Online integration and receive 20% off your first 6 months by using our discount code: A2XMAVENCY
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